Learn about Alterative financing.Apply for a loan in Olympia

Olympia WA

 Get Pre-Qualified!
It is always a good idea to get “Pre-qualified” or “Pre-approved” with a mortgage lender before purchasing a house. A Pre-qualification letter will add strength to any offer. (Plus, you'll ensure that you're looking in the right price range!) 

For a seller (or agent) to consider you truly "pre-qualified" you must have the "stamp of approval" from a qualified mortgage lenders. 

Mortgage Lenders
Referred by Castle Realty

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Know the Magic Formula!
Qualifying Ratios: The underlying basis of how a bank looks at you, the prospective buyer, to determine how much home you can afford, is a simple formula:

28% of your Gross Monthly Income can go toward your house payment (including PITI – Principal, Interest, Taxes and Insurance)

36% of your Gross Monthly Income can go toward your Total Monthly Debt Service (including your house payment).

(28% and 36% are the ratios established by the secondary mortgage market.)

Calculate Your Payment
(Online Mortgage Calculator)

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Know Your Financing Options!
...and don't settle for an agent that doesn't!

There are many types of loans available buyers today, the most common of which are: FHA, VA and Conventional Fixed Rate Loans. While the Conventional Loans Qualifying ratios are set at 28% and 36%, FHA and VA allow greater ratios for easier qualifying. 

The following is a list of Loan Programs that are used when one or more of the qualifying factors do not fall within conventional parameters. 

Stated Income Loans – For the Self Employed Buyer, or the Buyer with income that is not documented. 5-25% required down and good or better credit ratings.

100% Loans –  Also Known As: ZERO Down Loans – There are three types of zero down financing available:

V. A. loans - can be Zero Down – Of course you must have V.A. eligibility and that you can only get from Serving in the Armed Forces, or have had a spouse who served. 

True 100% loans –  are available to people with Excellent Credit. There are usually two loans at closing, one for the bulk of the purchase, and a second, which makes up a small 5,10 or 20% junior lien… This second mortgage is usually at a higher rate of interest. Although there are two separate loans, one payment is usually made. 

Nehemiah Program – Nehemiah is a non-profit corporation based out of California that aids homebuyers. A 4% Seller contribution to Nehemiah will yield a 3 % down payment gift from Nehemiah to the Buyer. 1% the contribution money is retained by Nehemiah for it’s operating costs. 

B,C and D loans –  Paying high rates is not something anyone wants to do, but sometimes high rates are an acceptable short term solution for buyers who have had recent credit issues. 

Seller Carry-backs, Real Estate Contracts, and Lease Purchases - are ways a Seller can help make purchases possible for a buyer with credit or qualifying issues. Few homes offer these incentives, and fewer advertise as such. 

First Time Buyer - Yes, there are several programs out there that cater to the first time homebuyer and the Low income Buyer. “Farm Home” loans a.k.a. “Rural Housing” have special programs available on certain houses in certain areas. Also there are special grant monies that come available from time to time for certain qualifying buyers. All of these programs offer below market rates, and special qualifying is required. There are usually a few strings attached as well: Home buying courses are usually required, and sometimes the homes fall under very tight scrutiny… above and beyond the typical lender’s interest.  We can help with creative financing and alternative financing.

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The "Tax Saving Benefit" Explained!
(Plus a customized tax savings sheet e-mailed directly to you!)

One advantage to owning a home is the “Tax write off”. Many Buyers do not fully understand this advantage, even if they have owned a home before.  

The concept is simple enough:

Mortgage payments consist of “Principal and Interest”. In the beginning of a 30 year loan, these payments are mostly interest. Say your monthly payment is $1000 per month, it would not be unusual for the first few payments for $950 of that payment to be interest, and only $50 would go toward principal reduction.  Half way through a 30 year loan, say year 15, and average payment will be half and half. About $500 interest and about $500 would go towards principle reduction. By the end of 30 years, most of your payment would towards principal reduction and only a very small portion would be to pay the interest. But that is all in the future… For now, the payments are the other way around…. Mostly interest. That’s the bad news. Apply for a loan lacey apply for a loan olympia

The good news is the interest on a loan for a primary residence is fully tax-deductible*.  This means you can save thousands of dollars every year off of your income tax.  That extra money in your Tax Return could be the savings plan you never got around to making, or a little investment money to add some improvements to you house.  ...Hundreds a month! That's thousands a year! After taking the tax savings into consideration,  owning can be cheaper than renting. We can help with creative financing and alternative financing.

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©2000-2005 Castle Realty, Olympia WA
Offering homes for sale in Olympia,
West Olympia, Lacey,
Tumwater, Yelm, & surrounding
Thurston County areas. 

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